🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

Brookfield closes in on 50% of Spain's X-Elio in $585 mln solar deal- sources

Published 2019-05-29, 03:10 p/m
© Reuters.  Brookfield closes in on 50% of Spain's X-Elio in $585 mln solar deal- sources
BN
-
GEST
-

By Andrés González and Isla Binnie

MADRID, May 29 (Reuters) - Canadian asset manager Brookfield BAMa.TO is close to sealing a deal with U.S. infrastructure fund KKR KKR.N and Spain's Ribera family to buy a 50% stake in solar group X-Elio, according to three sources with knowledge of the matter.

The transaction values the whole company, which builds and operates photovoltaic plants in the United States, Europe, Africa and Asia, at around 1.05 billion euros ($1.17 billion) including debt, two of the sources said.

Brookfield plans to buy a 20% stake in the company from the Riberas family, an industrial dynasty from northern Spain that founded car parts maker Gestamp GEST.MC .

It also plans to acquire a further 30% stake in the company from KKR, which bought 80% of X-Elio from the family in 2015. KKR will continue to hold the remaining 50% of X-Elio.

Brookfield, KKR and X-Elio declined to comment. A spokesman for the Ribera family did not respond to a request for comment.

Slumping installation costs and widespread political support have stoked investor interest in solar power, even as governments start cutting the once-rich pickings to be found through building subsidised plants.

Most of X-Elio's more than 78 solar plants and almost half its staff are located outside Spain.

The International Energy Agency has called for more investment globally in low-carbon energy, which was stable last year at about $620 billion. Spain, the acting government of Prime Minister Pedro Sanchez has outlined ambitious plans to boost renewable generation, including a five-fold increase in solar photovoltaic generation by 2030. ($1 = 0.8986 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.